This is even stupider.... I've been reading posts for about 3hours and I've been drinking, I just had to agree with the fact that local prices suck and that buying on the US 'grey market' really is the way to go.

I feel your pain from across the ditch in NZ. The local prices (here even more so than in Aus I think) are huge compared to the US. I was in NYC last year in September, went into Guitar Center and just about died. A MM Stingray 5 was $1039US sticker price compared to $5129NZ (around $3400US for those in the US reading) at the local stores (in Auckland, the biggest and theoretically most competitive for stores city in NZ). The only thing that seems to be better price-wise around here is that there are quite a few cheap used Ibanez ATK's floating around - I have one and am biding on a second. Oh, and squiers are cheaper here

The prices get cranked up going through more layers of middle-men than they do in the US I guess. It's a huge incentive to buy second-hand or from overseas. Though customs do their bit to support the local industry by making it incredibly difficult to bring stuff in, in my limited experience...

The maximum tarriff on musical instruments is 7.5% in NZ, and most attract no import duty whatsoever. It's simply a matter of more layers of middlemen and lower population so less players in the market so less competition. There is of course an added shipping cost for US made instruments, however almost all of the Asian manufactured instruments are more expensive here than in the US also, and we're closer than you are!!!
Steve

When I bought my projector for my home theater, I couldn't find the model I wanted for less than $8500 anywhere.

I ended up buying from a Japanese company that specializes in buying projectors in Japan, then shipping them to the U.S.. I would have had to deal with them if there had been a warranty issue (they had a great reputation in this respect), but I ended up with the projector (plus Japanese remote and manual) for under $5500 after customs and shipping, and no problems whatsoever.

Sometimes you gotta go with the grey market to get what you want at a reasonable price. If you do, make sure you go with somebody who will provide excellent service in the event of a problem.

My projector still rocks, BTW, though prices have come wayyy down since I bought it four years ago.